Product planning – BMS Notes

The most important steps a product takes from idea to sale are product planning and development. Planning and developing a product is an important part of making sure it launches and lasts, but there are no guarantees on the way to success. But this step can’t be rushed, or bad things could happen.

Steps in Planning and Making a Product

1. Coming up with new product ideas
2. The first step in planning and making a product is coming up with ideas for new and different products.
3. Ideas may come from inside the company, like the R&D department, managers, salespeople, and so on; or they may come from outside, like customers, dealers, competitors, consultants, scientists, and so on.
4. At this point, the goal of management is to come up with more and more new and better product ideas so that the best and most profitable ones can be chosen later.
5. Ideas being looked over
6. When you screen ideas, you look at them carefully and in great detail to see which ones have potential and could make a big difference in meeting your marketing goals. In fact, coming up with ideas isn’t as important as having a way to sort through them.
7. This is the right way to sort the ideas, because any that make it past this point will cost the company time, money, and effort later on in the product planning and development process.

Creating a Product Idea

Those product ideas that make it past the screening stage need to be turned into a product concept that lists the product’s benefits, price, and other details. At this point, the product idea is turned into a product concept, which is a product that the target market will buy.

Business Possibility

At this point, the goal is to see if the proposed product idea can be made and sold in the real world, taking into account things like demand and the costs of making and advertising the product. Management must also make sure that the idea for the product fits with the company’s technological, human, and financial resources.

Creating New Products

Product development includes the technical tasks of design and engineering. This is where the engineering department takes the product idea and turns it into a concert form of the product based on its size, shape, design, weight, colour, and other factors.

On a small scale, a model or prototype of the product is made. Making choices about the product’s packaging, brand name, label, and other things is also part of the process.

Try out marketing

A test sample of the product is put to the test in a real-life sales setting to see how people react to it. Based on how people react to the product, it may be made even better.

Commercialization

Once the company’s leaders are happy with the test marketing results, they move forward with a full-on plan to make, market, and promote the product. This is the stage where a new product is born and starts its life cycle.